SWP Calculator
Calculate Systematic Withdrawal Plan (SWP) returns, final value & total withdrawal amount instantly.
SWP Calculator
Final Value
₹0
Total Invested
₹0
Total Withdrawn
₹0
How SWP Returns are Calculated
A Systematic Withdrawal Plan (SWP) is the exact opposite of a Systematic Investment Plan (SIP). In an SWP, you invest a lump sum amount and withdraw a fixed amount every month. The remaining invested balance continues to earn returns. It is an excellent tool for generating regular income, especially during retirement.
SWP Calculation Logic
Monthly Balance = (Previous Balance - Monthly Withdrawal) × (1 + Monthly Interest Rate)
- Previous Balance = The corpus available at the start of the month.
- Monthly Withdrawal = The fixed amount you choose to withdraw.
- Monthly Interest Rate = Annual Expected Return / 12 / 100.
Example Calculation
For a total investment of ₹10,00,000, withdrawing ₹10,000/month at 8% p.a. for 5 years:
• Total Invested: ₹10,00,000
• Total Withdrawn over 5 years (60 months): ₹6,00,000
• Expected Annual Return: 8% (0.66% monthly)
→ Total Withdrawn: ₹6,00,000
→ Final Value after 5 Years: ₹6,53,884
Benefits of SWP
- 1 Regular Income: SWP provides a steady stream of income, making it ideal for retirees, freelancers, or anyone needing monthly cash flow.
- 2 Capital Growth: Unlike a fixed deposit where you only earn interest, the remaining balance in an SWP stays invested in mutual funds, offering potential capital appreciation.
- 3 Tax Efficiency: Only the capital gains portion of your withdrawal is taxed, not the entire withdrawn amount. This can be more tax-efficient than traditional interest income.
- 4 Flexibility: You can stop, increase, or decrease your withdrawal amount anytime, unlike annuities which are rigid.